Retail rent complexity, simplified
Model percentage rent with natural and artificial breakpoints, gross sales projections, and multiple reconciliation methods for retail leases.
Runs locally · Nothing is saved or sent to a server
Percentage rent calculations are surprisingly complex
What looks like a simple percentage of sales turns into a multi-variable calculation with breakpoints, exclusions, timing, and graduated tiers.
Surprisingly complex math
Percentage rent involves breakpoints, exclusions, reconciliation timing, and multi-tier rates. It's more than a simple percentage.
Custom spreadsheets every time
Retail leasing teams build one-off Excel models for every deal. Different analysts use different approaches.
High stakes for retail landlords
Percentage rent can be a significant portion of total revenue for retail properties. Getting the calculation wrong affects NOI.
What you can calculate
Natural & artificial breakpoints
Calculate both natural breakpoints (base rent / percentage) and negotiated artificial breakpoints.
Gross sales projections
Model percentage rent exposure across different gross sales scenarios to understand deal economics.
Monthly vs. annual reconciliation
Compare monthly percentage rent payments against annual reconciliation methods.
Multi-tier scenarios
Handle graduated percentage rates at different sales thresholds, common in larger retail deals.
Exclusions modeling
Factor in common sales exclusions: internet sales, employee discounts, returns, and service revenue.
Effective rent analysis
See total occupancy cost (base rent + percentage rent) as a percentage of projected gross sales.
At your service
Percentage rent, handled automatically
LeasePilot drafts complete percentage rent provisions with breakpoints, exclusions, and reconciliation schedules.